Inexpensive homes are in short supply in the Capital Region. With mortgage rates still near historic lows and a healthy local job market, first-time buyers are scrambling to find the home of their dreams, quickly.

And prices are rising.

"It used to be $100,000 to $150,000" to buy an entry-level home, said Miguel Berger, a broker with Better Homes and Gardens Tech Valley Real Estate. "Now you won't find anything" in that range.

The numbers tell the story. Of the 81 homes between $150,000 and $180,000 for sale in Albany County, just 42 have the standard three bedrooms. Add a fireplace, and the number available drops to 14. A garage knocks that number down to 11. That's out of a total of 862 homes on the market in the county.

Many first-time buyers, are searching online, but finding "they're a little late to the party," Chris McKenna said.

More Information

One-year change

The number of houses listed for sale in the Albany metro region dropped 14 percent between 2016 and 2017. Here is the one-year change in each market.

Starter homes up 2%

Tradeup homes down 22%

Premium homes down 24%

Source: Trulia data compiled by the Associated Press

By the time those homes have made it to the website, they're likely already sold, said McKenna, the chief lending officer for Cap Com Federal Credit Union. He suggested homebuyers find a real estate agent to work with, because they typically get the listing information before it's online.

"We certainly could use more new construction," said Joel Koval, a broker at RealtyUSA's Clifton Park office, who is president of the Greater Capital Association of Realtors. "New York is a difficult state to get approvals through."

"It's amazing that anything gets done sometimes," he said, recalling the eight years he spent as a member of a planning board.

"Between the cost of the land and the approvals that go into it, it forces up what you have to ask for a home to have it all make sense," he said.

Cap Com's spring Homebuyers Workshop & Expo, held last weekend in Colonie, focused on preparing people to buy a home, McKenna said.

"We provide two things: What do you qualify for, and what will you be comfortable with," he said. "One of the tips is to be prepared for hidden costs."

A home may need repairs, for example. And then there's the cost of furniture and other improvements the new owner might want to make.

"Everything is driven by how much someone would qualify for on a mortgage," said Marie Bettini, a broker with Albany Realty Group. Starter homes, she estimates, are likely to be priced in the $200,000 range or less.

"What's available? Not a lot," she said. If the starter home is in very good condition, it will sell right away, and often receive multiple offers, especially if it's priced at or close to current market value, she said

"Houses that are priced too high are sitting."

One nice thing about a smaller home: improvements can cost less.

"If you only have 8 linear feet of counter top, it's a lot less expensive than 28 linear feet," Bettini said.

And buyers who have watched too much HGTV are expecting their starter home to have the stainless steel appliances and granite counters they see on TV, Berger said. Younger shoppers often "don't want to do any work," he added. "It pretty much has to look good."

One alternative might be a townhouse. With shared yards and a smaller footprint, they might be just the answer for buyers looking for new construction.